china is doing well. look for decoupling. >> when scott wapner starts speaking in yiddish, that's the bottom. you can buy it here. >> the colonel clink impersonation. >> we'll see what transpires next week. "power lunch" picks up the story right now. that is the number that everybody is watching. it is the dow jones industrial average, and it is currently down by 454 points, but at the low of the day it was down by 537 points. >> it has been, as you probably know, a very wild day right from the get-go. you see the swings there. those are the dow industrials. beyond the dow, the s&p 500 off 52 points, closing in on a 3% slide. touching lows not seen since really late 2014. >> as for the nasdaq, ty, it is really getting slammed. it's off by 3.5%, and solidly in correction territory. as for oil which, of course, is the central story behind the

markets, crude is currently below $30 a barrel for wti. off by nearly 6% as we speak. i believe the last time it settled below $30 was december of 2003. >> and there is gold up $16 an ounce or 1.5% moving the other way as you might well expect today and for good measure there you saw the 10-year bond. that yield briefly dipping below 2%. >> hello, everybody, i'm mandy drury is tyler mathisen. as you can see, it's going to be a very busy day on "power lunch." >> and to kick it off, let's get down to dominic chu at the nyse. >> no shortage, guys, of headlines coming out of here, the nyse today. as we take a look at what's happening overall with the sectors, let's dig below the topline numbers you just spoke about. the s&p 500 now off again by about 52 points. a huge move to the downside, almost 3%. as you take a look at the sector composition, this is perhaps a telltale story of what's going on. what's interesting about this

right now is the jockeying of position. energy and financials, as you're seeing there, the two worst performing sector -- two of the worst performing sectors in today's trade, but financials and energy have been kind of jockeying for which has been the worst so far, and, of course, bank earnings earlier today have played a big part in that overall financial weakness story. citigroup shares off by 6.5%. they reported numbers. blackrock, the world's biggest asset manager. pnc financial one of the relative winners, if you want to call it that, in the regional bank side of things, only off by 1.5%. the reason it's important is because now financials with this move lower have become the second worst performing sector year-to-date. that's something a lot of traders are watching. as you take a look at some of the other at least trades that are happening, let's talk about what's going on with the ten-year yield. below 2% at one point today. at least some traders are saying as the stock markets have slid lower, you haven't seen a

dramatic move lower in yields, so perhaps that is a sign at least of some calm for some traders the overall sentiment is negative. let's put up that gold trade once again because it is a big deal. >> dom, you just mentioned the word calm, on really big down days, i have talked to some of the traders and they said, yes, it's a down day, but, a, the volume wasn't particularly heavy or maybe there wasn't a feeling of panic or capitulation. what is the vibe down there? is there any kind of feeling of panic? >> there is not a feeling of panic, and that's a good way to put it here. people are starting to mention the word capitulation, although nobody is using it as describing what's happening in today's market. what i will say though is there is a volume pickup. we were looking earlier today at the s&p 500 index etf, the spdr, the spy, the ticker there, a few minutes ago we traded 185 million shares worth of this exchange traded fund that tracks

the s&p 500. on a normal day over the last three months it typically trades around 125 million on a full-day basis. so halfway through the day already trading 60 million shares more than it normally does at least over the past three months. even though there is a quote, unquote, sense of calm, no yet talk of capitulation taking hold now, we have seen these volumes accelerate and just to tell you guys right now, down volume here on the new york stock exchange, 628 million shares, up volume 23 million. 638 million to 23 million, down volume to up volume, guys. >> thank you very much. let's go uptown now. the nasdaq 100, it is off more than 3.5%. insight corporation, the biggest loser in that index so far this week. the drug company down 20% so far. bertha coombs is following the big movers. >> if you're talking about selling biotechs, today the big drag is actually coming from tech. led by intel's disappointing

guidance, although off of its lows right now. that warning is weighing on the chip sector. philadelphia semi-conductor index down 5%, yet still when you look at intel, it's about 18% above its august flash crash low. chips, in fact, are still about 4% above and apple, another big drag today, also about 4% above that flash crash low. that's sort of an area that people are looking at to try to determine whether we will find a bottom. biotechs though very much in bear market territory taking out their august lows two days ago. down more than 17% in the last two weeks. that's as much as the biotech sector declines over the entire third quarter last summer. when you look at 2015's momentum leaders, the f.a.n.g. names, they are nowhere near taking out their 52-week lows. facebook up 30%. amazon up 26%. i want to leave you with a little bit of green, wynn and electronic arts are about all i

could find over here that are bucking the trend on some pretty good news for them. back to you. >> all right, thank you very much, bertha. oil getting crushed right now. prices falling below $30 a barrel. new 12-year lows, and brent briefly dipping below $29 into the $28 territory. let's go to brian sullivan with a news alert from the oil patch. >> thanks, tyler. thats time of the week where we get the weekly rig count numbers and the market does not like it. the u.s. lost one oil rig from last week. that's it. we are down one oil rig. 14 total, 13 of those were gas rigs. market obviously was hoping for a little more rigs to come offline. production remains high. the price of oil, $29.30 right now. so our low of the day is $29.13. the big question in 90 minutes, will we close below 29 bucks a barrel. we lost one oil rig, the market just keeps producing oil, and it is not happy about it. back to you. >> thanks very much, brian. seema mody now for a market

flash. >> we have been trying to search for green. chipotle one of the few stocks trading higher today. up over 1%. the burrito chain will briefly close all 2,000 u.s. restaurants next month while the company holds an all-staff meeting to address food safety issues after a series of e. coli outbreaks. shares have outperformed this week up near 12% but it's still down more than 35% from its pre-e. coli outbreak levels. >> one of the other rare green lights out there in sea of red. big moves in the bond market as well during the stock market sell-off. yields on the benchmark 10-year note falling below 2% earlier. it's just above that level right now. rick santelli is tracking that action at the cme. interesting times we live in, ricky. >> absolutely. you know, ponder this, here we sit at 202 right now. last week we were at 212. if i were to tell you we'd drop ten basis points in a 10-year,

would you have guessed the kind of week it was for equities? i don't think so. the equity markets have had many things work in their favor to give them this helium lift. meanwhile, rates for the most part have been low for a very long time reflecting not only domestic weakness but global weakness, think china. treasuries are kind of priced right. it's the equities that seem to be catching up. look at an intraday of 10s. yes, we briefly got down to 198. if you look at a 2-day, one of the reasons we got down to 298 was, well, let's see, at 8:30 eastern you had weak retail sales, you had weak industrial production, weak capacity utilization, weak empire. it follows a lot ever weak data. when was the last time we settled under 2%, and we haven't yet, by the way, that was the 14th of october as you see on the left side of that chart but let's push that chart just a little further back to august. the reason i'm doing this is because we spent the end of

september of last year, pretty much all of october building up a base of support around that 2% level. yes, it's psychological, but it might stay here a lit longer. a close in front of a three-day weekend below 2% would probably be very meaningful. >> i think the odds for a march rate hike have come down from 30% yesterday to 16%. 16% suggests there's still some chance there, but would you say especially after the economic data you vau today and the market volatility, it's pretty much the nail in the coffin for a march rate hike? >> absolutely not. i think the fed is normalizing rates because even if we go into recession, which is inevitable at some point, recessions happen, i really think that the damage of unintended consequences, bubblicious activity created by too low of a rate scheme for too long, malinvestment, you know all of that, i just think that those risks are higher, but i think

the market has a problem trying to discern that because i don't think the fed is transparent as they say they are. i don't think that's exactly the message they've been saying. when they did tighten, they were talking about it being data deat the -- dependent. >> we'll catch you later. thanks a lot. >> thank you. let's bring in cnbc contributor zachary karabell and jonathan brodsky. gentlemen, welcome. you know, so much, zach, talking about china. are we magnifying it too much or are we not? >> look, i mean, china was clearly the trigger for this reorientation, and i think the story which is a china story and everyone has been talking about it but we're going to keep saying it until it sinks in, you do have this massive reset of the energy complex, and a lot of that is triggered by china, has ceased to be not only the

marginal but the predominant consumer of industrial metals and energy worldwide. it was never a huge consumer of oil, that's more of an oversupply issue. when that reset happens, everybody's models, everybody's assumptions in the financial world get blown out of the water. i don't think that changes, you know, the outlook for disney, but, you know, even though disney is down 5% today. it's not really implicated in that story. it's a financial world reset, and i think until it's evident there's massive deterioration in the economic fundamentals of the united states or of the eu, that's what we're dealing with, not some sort of harbinger of economic, real world economic weakness. >> my eyes, i don't know whether they were strikitricking me or t they indicate your fund was up as of this morning about 6% year-to-date. how the heck have you done that? >> i wish that were the case. i think those notes are looking backwards into last year, but referring back to the china

discussion, you know, when we look at our holdings and we look at our research in china and we talk about an economic slowdown, we've seen that now over the last 12 months. in fact, we've seen a moderate stabilization in economic activity. one issue you have and it increases the fear factor is that the data coming out of china is not believed very well by the market, and, in fact, we would concur with that. we have growth rates around 4% to 5% but it's a much healthier growth rate and the government has some policy issues in its sleeve it could use. last year they cut tacks on automobiles, especially ev and smaller, cheaper cars and that had a dramatically improved result in terms of car sales. so we think soe reform, and we think there's some opportunities going forward from a relatively low base over the last 12 months. >> you also point to the nonperforming loans that those banks in china may have, and you don't trust those numbers, do you? >> yeah, here is an opportunity

for a stock picker to give the audience a caution on etfs, which are focused in china very much around banks and the large old soes. that's an area that we think we have real issues, and if you look at the metrics on the banks, they're trading or four or five times earnings less than 50% of book value. npls are listed at 1% to 2%. a real estimate of the npls could get into the high single digits and even the teens and that could have a drop-down effect on the economy. we would recommend investors to focus on newer economy types of stocks, stocks focused on consumption which have gotten very cheap, especially in hong kong. >> right. >> stocks focused on environmental improvements which have also become very cheap within the market. so there are opportunities there. >> i want to get back to zach quickly. americans are very -- individual investors are very marginal holders of chinese shares. >> yeah, and again, all these

issues which are totally right and have been talked about for the past ten years, what's the balance sheet of chinese banks, they're totally opaque. our own banks are opaque and we know that from 2008-2009 trying to figure that out. that last statement about some stabilization of growth, that's what matters for nike. that's what matters for american companies like ge which is about to do a $4 billion deal to sell its appliance division to haier. it's whether that aspect of the chinese economy continues to slow but not implode, and, you know, the implosion of the industrial economy and its effect globally on energy is quite distinct from, you know, how many sneakers is nike going to sell in china this quarter or how many iphones is apple going to sell. these are still incredibly robust markets for those consumer names, and i think this all -- these market moments, right, and these discussions, it all becomes some sort of hysterical bix and it's a binary is it falling apart and it's

not. i think it's actually a very ditch story going on simultaneously. >> zach, thank you very much. heir karabell and jonathan br d brods brodsky. >> china's shanghai composite falling 3.5% entering bear market territory after the index lost 20% from its high in late december. what's next? michael schuman is china-based journalist and economics writer. good to see you. and you have lived in the greater china region for as long as i can remember. you have covered the greater china region for as long as i can remember. do you fear that the pieces are falling into place there for a full-blown economic currency and banking crisis? >> well, you know, you have all the pieces there. this country has seen, you know, the largest buildup of debt in the emerging world in the last decade. the private debt to gdp is over 200%.

that's 80 percentage points higher than it was a decade ago. the guys at capital economics have done studies about this, and they found that no emerging market in the last 30 years has seen that kind of buildup of debt without running into serious trouble. at the best just a serious growth slow down. at worst, a full on banking crisis. you're seeing pieces of it here, folding stocks, depreciating currency, capital outflows. as you were just talking about, no one really trusts the strength -- the official strength of the bank balance sheet. yeah, all the pieces are there for something that would like quite ugly. >> what would push it over the cliff? zach was talking about things slowing down but not imploding. what would cause a major impacific ocean and what would that do to us here in the states? >> well, you know, it's hard to say because what also makes china a little bit different from other countries, emerging markets that have had their crises in the past couple

decades is that the government still maintains a tremendous am of control in this economy. the banking sector is effectively state-owned, and they have a lot of levers in terms of what they can do with capital -- allowing capital to flow in and out -- >> but have they lost control? have they still got -- >> you might not -- they still have the elements of very serious capital controls here in china. they can tweak them when they need to. they have tremendous foreign currency reserves, over $3 trillion. so they have a lot in the war chest they can do to stop a full-on crisis from happening, but that doesn't mean that the pain won't be there. it doesn't mean that, you know, there's no hole in the banking sector that needs to be filled. it doesn't mean that you could see a very sharp slowdown in growth that could effect the level of joblessness here in the country and that would have a knock on on consumption, and that, of course, does hurt the

nikes of the world if you do see something happen to the chinese consumer here and their outlook not be as positive as people think it is. and that's how -- that's why china, you know, this is the world's second largest economy. its financial sector isn't quite as connected to the rest of the world as many other large economies, but it plays such a huge role in what the world buys and what the world sells to china. anything that happens here is going to ripple through lower markets. >> michael, always good to talk to you. thank you for your on-the-ground feeling there. >> thank you. >> and we'll continue to watch china exporting its volatility around the world. thank you, michael. >> mandy, the financials one of the worst performers in the sell-off. there you see some very gaudy numbers and not in a good way. citi, blackrock, naveant, morgan stanley sporting a 4.5% to 6% declines. look at how some of the popular etfs are trading right now with major downward moves.

the xle, tracks energy, down 4% or thereabouts today. plus yields on the 10-year did zip below 2% for the first time in three months. mortgage rates closely tied to this. has house hunting just gotten cheaper? find out next. you're watching cnbc, first in business worldwide.

welcome back to "power lunch." i'm mandy drury.

waurnlt clo walmart closing down almost 270 smaller stores worldwide. it will effect about 10,000 employees. the stock is down by over 2%. financials leading today's sell-off and two big banks are out with earnings. citigroup beating estimates on top and bottom lines and a mixed quarter for wells fargo. revenue falling short and that stock is down by about 4% right now. let's get to morgan brennan. >> the dow transports are down nearly 3% remaining in bear market territory, and among the laggards, avis budget, united continental, fed ex, and expediters international. expediters is hitting a fresh 52-week low falling on news that amazon's china arm has received approval to ship ocean freight. that's a move that will give it more control over shipping products from chinese factories to sell to u.s. shoppers.

one reason that stock is lower, ubs says this could negatively impact that company. tyler? >> yields on the 10-year dropping below 2%, sitting at three month lows. how is the mortgage market reacting to that? diana olick is tracking that. >> rates made a big move overnight and experts say you do not see this kind of move in mortgage rates very often. the popular 30-year fixed loan has come down from above 4% last week now to some lenders at 3.75% for the best borrowers. that's according to mortgage news daily. in -- it is especially a big deal heading into a holiday weekend when you know there will be a lot of open houses and hungry buyers out there. most home buyers expected rates to move up this year, so this adds a lot of urgency to house hunters out there now. these low rates allow them to buy more house which is crucial

given how few listings there are out there and how competitive the market is right now. of course, market volatility does hurt especially if some borrowers are relying on equities or options tied to the market to finance their purchase. now, for some market volatility may actually outweigh the lower rates. back to you. >> thank you very much, diana. take a look behind me. lots of red with the dow down by 450 points right now. it was down by over 500 in earlier trade. take a look at the stocks in the index right now. intel here is down by over 8%, the biggest drag there on the back of its latest outlook. dupont and disney are both down about 5% as well. and you've also got the sectors leading the sell-off coming your way, but the dow is now down about 8% year-to-date. don't go away. this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions

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at ally bank no branches equals great rates. it's a fact. kind of like reunions equal blatant lying. the company is actually doing really well on, on social media. oh that's interesting. i - i started social media. oh! it was my...baby. welcome back to "power lunch." a massive sell-off on the street right now. the s&p 500 falling below its august lows. it is currently down by 2.6% at 1871. checking on all the sectors here driving the big sell-off, you have down here energy which is the biggest laggard. crude oil prices, wti, falling below $30 a barrel. we'll see whether or not we actually close below even $29. that's the next level to watch and we'll find out in the next hour of "power." the least lagging sector right now is utilities, but even that is a defensive sector and is off by 1.7%. it just goes to show the extent of selling across the market.

seema, you have a market flash for us. >> that's right. shares of tyson foods, pilgrim's pride, and sanderson farms all falling 4% or more on news of a bird flu outbreak in indiana. the maker of liquid and powdered egg products post holdings also falling 3%. cal-maine foods trading higher on the expectations bird flus will raise egg prices. >> thank you very much. investors looking for safety in bonds this day. currencies also on the move. rick santelli is tracking it for us at the cme. hi, rick. >> hi, tyler. since we spoke about treasury rates about 20 minutes ago, they moved up to 203 which means they're only down 6 on the day, down 9 on the week. i continue to point out the incongruent relationship on these big down moves in equities with down moves in yields. let's switch gears. let's look at a november start to the euro versus the dollar. okay? you see how the euro is actually

looking like it's going to break out to the top of its recent 106 to 110 range. let's look at april 1st of the dollar versus the yen. the dollar is at the lowest level since april. now, think about the unintentional, unintentional consequences of what's going on. abenomics, the japanese currency should be weak. they don't want it strong? they want it weak for imports. the carry trade has made the euro and yen move higher. believe me, they don't want it to move higher. in terms of the dollar/yen, not much different. look at a one-year chart there. it's goidoing the same thing against your currency. back to you. >> stocks, as they tank, where does the money go? some of it flowing into gold. let's go to jackie deangelis at nymex for those closing prices. hi, jackie. >> good afternoon to you, tyler. a flight to safety definitely giving a bid to gold prices here, but around the $1,090

level, not enough energy to get us over the $1,100 mark. interesting because the dollar is losing ground so that's supportive as well, which is balancing out this flight to safety. also, a little bit of that dollar pushing gold prices higher. what's also interesting, copper prices staying thaundunder that mark as people are concerned about what's happening in asia and the sell-off in equity today. >> thank you very much. let's take a look at the wall. it says it all about today's trading. lots of selling going on right now. look at that. there are about 20 stocks out of the 500, maybe that, that are in the green right now. there are some winners if you know where to look. i would suggest you look at the upper left-hand corner. you will find wynn resorts up about 10% on the day. general growth properties up more than 4%. newmont mining up almost 2%. "power" back in two. sure, tv has evolved over the years.

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movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. another wild day for the markets. the dow is currently down by 477 points. we're off the lows of the day but still with a drop of 3%, not the kind of day you would want to be looking at and, indeed, right now all three indices are

at their worst levels since august 24 last year. you have the s&p 500 down by about 53 points or 2.8%. the nasdaq is down by 3.5%, and the russell 2000 firmly stuck in bear market territory down by another 3%. oil once again the big drag on a lot of the stocks out there at its lowest levels dating back to 2003. 2940, see whether or not we close below that 29 mark. to show you the leveraged etfs, these are all three times bullish meaning they go up and down roughly three times what the market does. and you can see the whopping double digit drops for a couple of them on the board. the vix clearly showing that there's some fear out there in the market. we did move back above the 30 mark earlier on briefly, but 2958 is a gain of 23% in one day alone. so on "squawk box" this morning

larry fink said the sell-off would force businesses to take action. >> i believe you're going to start seeing more layoffs in the middle part of the first quarter, definitely the second quarter, because if we don't see some swift rebound, and as i said, i think we're going to have probably more pain before we have that lift. but i do believe by the second half of the year, the market is going to be higher. >> is fink right? will we see a market rebound in the second half? joining us now are the chief investment officer of clearbrook and nancy. what do you see in your crystal ball? do you see much more pain ahead before we see a little light? >> thanks for having me. yeah, i think the markets are going to continue to do what they do well, which is cycle through the fear and greed cycle, and when we hit despair is usually the time we start to see opportunities which is why we're taking an interest in the large cap integrated oil stocks.

but as far as where the market will be in the next six weeks or the next six months, i think it was louis who said the only certainty in wall street is you don't know what's going to happen next week, and so i do expect difficulty and volatility. get used to it, but in terms of will we have an up market this year? i think the odds are good given the levels we're coming off of as of right now and also against the marginal moves in oil and the dollar. i think the significance of those were -- >> so, nancy, just to pick up on what you were say being des pai in the narge patcenergy patch, be looking to overweight them soon? >> we will be, yeah. that's three things you need to railroad i think as an investor. oil went from $2 a barrel to $60 a barrel in the '70s. from $5 to $50 in the '80s. this kind of psycyclicality is t

oil does. the data goes back to '65. i have been investing using relative yield since the '80s. and what you find is great opportunities to buy and sell. the relative yields are attractive right now, and jim paulson recently did an analysis in periods of full employment, so i hope larry fink is wrong, oil outperforms by about 6.5%. and, in fact, exxon is up this year -- well, it was through yesterday versus a down market. i'm glad you mentioned jim because he's going to be coming on in the second hour. "power." tim, let me get to you. where are you seeing attractiveness? where are you seeing opportunity appear? >> thanks for having me back. we've been looking for a reset in asset prices. we were looking at all time highs in a number of market indices and now stocks are

attractive. we're seeing the s&p on a forward earnings basis looking at 14 times earnings. the euro stock index at essentially 13 times earnings so it's becoming quite attractive. we're seeing stocks even though they're down quite substantially today, the financials look interesting. the rise in the interest rates will help net interest margins for them. as interest rates rise and nor yammize -- >> but how much will they rise? already expectations is being scaled back. if the fed is truly data dependent, you're already starting to hear fed speak get increasingly dovish. do you think the financials will really have those rate rises to latch onto? >> at this point in time they've done so well in regards to cost cutting over these several years, any interest rate rise, for example some of the financials who have not been charging, for example, for money market funds, yields have been so low, so any increase in terms of fees that they can charge on the trills of dollars in money market funds would be very, very helpful to the bottom line.

loan growth has also improved dramatically over the recent year as well. so that could help to support the prices and move it upward. >> tim, thank you very much for your commentary and nancy teng ler with heartland financial. see why nancy may be overestimating the slowdown in china on the website. believe it or not there are some bright spots in this massive sell-off. dominic chu has found them. >> there aren't many, there aren't many at all but if you look at the overall picture, i'm at post 5. that's macy's. it's up now today just about a half a percent. it may not be that much but on a day when the dow is down 500 points, it does stand out as one of the winners here. it's thematic though. if you look at some of the beaten up retailers like a best buy or a tiffany or a ralph lauren, all of those stocks are showing relative strength.

tiffany's up 1.33%. ralph lauren just going back negative. at one point it was slightly positive. so retailers, the beaten down ones, maybe it's short covering as part of the story, maybe fundamental buyers, but the retailers standing out as a relative winner in today's trade. >> thank you very much. weak u.s. economic data contributing to today's big sell-off, and retail sales, steve liesman, right at the heart of that weak data. >> they're not incredibly weak. they could have helped the story. this market could have plunged -- people said, wait a second, the u.s. economy is strong. we didn't get that. we got softer economic data. i want to go through the data overall what we got today. what is green is good and yellow is i'm wondering about and red is bad. take a look at the first thing. one green spot here is housing. new starts have been good. prices have been good and firm. but lower existing sales. overall that's in the green when it comes to the u.s. economy. but as tyler said, we got the consumer retail spending numbers and they were soft for december.

that's a negative part of it. overall, i'm putting consumers for the first time in the yellow. they had been green, but we had strong jobs, low oil prices, and better sentiment but right now it's on watch. we have a 2% growth rate in that. any weaker and it could bring down the whole economy. first, manufacturing has been one of the worst parts of it. energy is a big part of the reason why. maybe autos could go either way actually, positive or negative right now. that's because of the other negative here, trade. what's happening overseas having a big effect. you can see weak global growth. the strong dollar. the only good part coming from trade is low import prices. i want to show you another way to look at this which is what should i pay attention to out of this? i did yellow, green, and red based on how big a part of the economy they are. so the consumer being yellow and 70% of the economy tells you we could still grow and we're still growing. if that turns red that's when you look for negative. government is adding a bit to

the economy in year. business investments adding a little bit. there is the red for manufacturing. there's a red for inventories. a green for housing and a negative for trade. consumer is what you want to watch and all these other factors are going to tell us are we running at 1, 0, or 2 or 2.5 or 3. >> thank you very much. everything is getting crushed into today's broad market sell-off basically except for the stocks dom chu just mentioned a couple minutes ago. take a look at biotechs, the ibb down about 4%, 3.5% right now. we'll tell you about one biotech that has lost half its value today -- almost lost my breath on that -- and with the s&p 500 tanking breaking below its august lows briefly there. "power lunch" is back in two. in new york state, we believe tomorrow starts today. all across the state the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow.

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whether one of its drugs will be approved. >> take your breath away on a day like this. mandy, thanks. energy stocks feeling more pain as oil drops below $30 a barrel. michelle caruso-cabrera looking at what's happening with some corporate bonds in the energy sector. a lot of people worried about this. >> so when things start to get very bad in the commodity sector, you don't just look at the stocks, you look at the bonds and it will tell you whether people are very frightened about whether or not these guys can pay their bills. whiting petroleum have a bond that's due in 2019. $1.1 billion in face value. price today 63 cents when i went to fidelity. yesterday somebody sold it for 67. it traded around 65 to 67 yesterday. back in december, tyler, 94.5 cents. yield to maturity right now is

21%, up from the coupon of 5% when it was issued. chesapeake is in an even tougher position. take a look. they have a $600 million corporate bond that matures in august of 2017. 53 cents. earlier this week it was 55 cents. price in october, 99 cents. yield right now 54%. when the coupon -- >> 54% yield. >> exactly. exactly. >> that would be distressed. >> that would be distressed at this point. then again there's pioneer which is still rated investment grade barely by s&p. they have a 500 million dollar corporate bond maturing in march of 2017. you want that you will have to pay $1.04, more than par because you think you're really going to get paid if you buy that one. the yield on the coupon was 6.6%. now it's only 3.6%. >> those are tells about what people think about the health of those companies.

>> whether or not they can financially pay their bills. >> thank you very much. seema mody is a market flash. >> a slew of stocks are hitting fresh 52-week lows in today's session. among the big names, caterpillar, united continental, navient and carmax trading down 3% to 5%. these are just a few of the 100-plus names hitting new lows on this very rough trading day. mandy? >> it sure is rough out there. thank you for that. i have here the ten sectors in the s&p right now, not a single bit of green among them. the s&p itself is off by 2.5% at 1872. we've got here telecom is the best performing sector. that's not really saying very much because it's still off by 1.7% but nonetheless the more defensive sectors like utilities and telecom are holding up a little better than the others and then, of course, there is the other. energy will be a huge theme in the second hour of "power" with crude below $30 a barrel. the energy sector is off by 3.5% which cues mr. oil himself,

brian sullivan. >> turning into that, mandy. thank you very much. coming up in the next hour, we are going to show you a small list of oil companies that maybe can weather the storm. we ran a screener for companies with low to no debt and good cash positions. we're going to show you that list exclusively at the top of the hour. plus, we're on the hunt for some other big opportunities in the sea of red. wells capital's jim paulson ahead with some really sound advice and we, of course, are counting you down to the oil close. crude below 30 bucks a barrel. where will it end the week? stick around to find out. "power lunch" will be right back.

welcome back to "power lunch." i'm mandy drury. here are this hour's power points. a massive sell-off on the street. the dow is currently down 450 points. energy and materials leading the declines with intel the biggest loser on the dow. so as we're looking at a broad market sell-off under way on the street right now, we're going to bring you the big cap tech names in the nasdaq 100. we know the nasdaq 100 is down by over 3%. the small caps in the russell 2000 is in bear market territory and down by nearly 3%. so coming up we'll be joined by veteran market watcher art cashin. he's seen a lot of bear markets

in his time. as we head to the break, take a look at the most widely held stocks, google, apple, microsoft, and jpmorgan all in the red as well. we will be speaking with jamie dimon live from the world economic forum in davos. make sure you tune in. don't go away. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.

a really rough end to the week. we have yet another big sell-off with the dow currently off its session lows but still down 447 points. we were down at the lows down by over 500 points. the s&p and the nasdaq firmly in the red as well. lets get to the floor of the stock exchange. art cashin and sue herera are joining us. great to see you both. i was just reading for the dow and the s&p we're looking at the worst month potentially since october of 2008. i remember 2008. i'm sure you remember 2008. they were ugly days and yet we didn't hit bottom until the following year in march. could this be a similar situation? >> well, i'm not sure that it's quite a similar situation, but we're off the lows only because crude is off the lows. >> right. >> and that's been a dominant factor here, and if crude continues to weaken through the

next week, it's going to draw down on us. and the time of the year is not good for us. this is earnings season and that means corporate buy backs are standing aside until earnings season is over. so one potential support for the market has been removed since the companies can't buy back their own stock. >> the other thing is that if you run a hedge fund and you have not had a good year, you may be facing some redemptions. >> right. >> and as a result of that you may need to sell whatever you can to raise the cash in case you get those redemptions, and there is some of that going on in the market right now. it has been a very tough year. last year was as well for many hedge funds out there and if their investors call their money back, there are only a couple times during the year they can do that, at certain periods of time, and as a hedge fund you have to be prepared. if you can't sell what you want, you sell what you can. >> that's an excellent point. >> there's a little bit of that going on here. >> art, how much are you hearing about that, about margin calls, about forced selling pushing the

market down at the moment? to what degree is that the contributor? >> yesterday we didn't see much because the market rallied, but the day before there was certainly forced selling. there were rumors around as to whether it was a hedge fund or, in fact, a sovereign wealth fund, and we'll look today to see if that picks up. we'll look particularly in the period between 2:00 and 2:45 to see if there is any heavy selling comes in. often when people can't meet a margin call, that will be the time when selling on margin calls will show up. >> have you heard anyone try to call a bottom, art, down there on the floor? >> no. they know that we're all under the thrall of crude, and so even if you look where things are technically, it's tough. we took out the august 24th lows. that's not a good sign, and i would love to give you a take on how the volume was going, but it

being an expiration day -- >> that's hard to tell. >> distorted. >> the other thing is we haven't seen the washout in the crude oil market yet, and that's very worrisome to people who follow crude. yes, we have heavy pressure. yes, we have the market down between 5% and 6% at various times during today's trading session, but you haven't seen the capitulation in crude, and almost every brokerage firm out there, the big houses, are calling for even lower crude prices. so until you get that washout, i think the stock market is being held hostage to the crude oil market. >> that's an excellent point. so, art, considering you have been through many booms and busts in your time, how does it feel now compared to previous times? people try to sort of draw parallels to 2008, but what feels particularly different to you? >> well, you don't have that sense of panic that you get usually at a capitulation bottom, and you have odd things going on. when you have a purge kind of

opening as we had this morning, ordinarily the selling exhausts within the first hour of trading and you get at least some rally attempts. we were denied that today because the pressure stayed on crude, and, thereby, we couldn't get any rally attempts. yes, we're allowed to drift up off the lows but no real rally attempt. >> sue, i know you follow the bond market very closely, and there seems to be a war there. you have the fed raising rates and the market saying uh-uh, taking the fields down, and the markets seems to be winning. >> absolutely the market is winning. i think the federal reserve is watching this extremely closely, and i'm not sure they're going to be able to make a move on interest rates, especially if china continues to have the difficulty. there's been some amazing currency moves in the overnight trading sessions and that's a worry as well to the fed. so the fed may want some inflation in the system. i don't see inflation in the system right now. they may want to raise interest

rates, but i'm not sure they can. >> art, what's your call on interest rates? >> i think we'll see zero again before we see 1%. >> i would agree with that. >> i think that's what ron insana said yesterday, we could see a reversal a backtrack by the end of the year. is that what he said? >> i think so. i think he's been saying that, negative interest rates and that's one of the keystones, art, your view on the markets. >> absolutely. >> art, sue, thank you very much. you have no idea how interesting the next hour is going to be. >> it's going to be a very interesting hour. things get really interesting particularly at 2:00 p.m. as we've been mentioning, watch the 2:00 p.m. hour because string things start to happen. we could get a reversal we could get not a reversal. >> thing will get interesting at 3:00 p.m., too. see you. >> see you later. >> 3:00 p.m. says they're the most trading hour of the day, we're the most interesting hour of the trading day. we're branding that right here. a tough year for your money getting tougher today, folks. stocks sinking, oil falls below 30 bucks a barrel, now at

$29.50. the dow is down 440 points. it's now down more than 8% this year. this, folks, by far and away the worst start for the stock market of any year ever. on that note, hi, everybody, happy friday. i'm brian sullivan. mandy is going to stick around for this hour as well. a very special hour and we'll tell you why at the end of the show. let us jump in and try to figure out what the heck is going on with stocks and welcome in jim paulson, chief investment strategist with wells capital management. jim, the only thing that has really changed since december 31st is the year on the calendar. what do you think is going on with the stock market? >> well, i think that -- brian, i think this market is doing a good job, which it didn't do in august to some extent when it was down here the last time, of creating what needs to happen i think to finally bottom this thing out at some point. we are revaluing the stock market, the trailing multiple is probably closing in close to

16.5 times earnings. we're starting to get a little fear in the marketplace, and i think that's what we needed to do here. we need to reset values at some more sustainable lower level and we need to gut check investor sentiment away from complacency, and before this is over, i think we're going to accomplish both of those things. i think it might take a little lower yet. i kind of think we might still break 1800, but i do think this is going to turn out to be more of a buying opportunity rather than a full-fledged bear market. >> we know what's been selling. that's everything. we know why there's been selling. really oil and everything you just talked about. who is the one selling all these stocks? i talked to mom and pop and they're like i'm not selling stocks. who is pushing this market down? >> well, a lot of times, brian, it's kind of the contraopposite when we took off from the lows in 2009. there were very few buyers, and yet the market rose dramatically

in 2009, and what happened was all the selling just stopped. everyone who wanted out was out, and then if there's no sellers, it just takes a few buyers to really move prices a lot. i think you're getting that same thing here a little bit kind of the opposite way around. if everyone is already out on the sidelines where they are but there's just no buyers, no one is buying yet, then it doesn't take much selling at all to push stock prices lower. we could see more selling again. we could see that pick up, brian, if we break through these -- you know, the august lows decisively here and people think we are headed to recession, we are headed to a bear market. that could reaccelerate the retail seller again. >> but, jim, when the stock markets do stabilize and when they resume their uptrend, and we know it is going to be a when, not an if because this is the way things go, is it going to be the domestic market, the u.s. market, that is going to lead the charge to the upside or

will it be another market elsewhere in the world? >> i think -- i mean, clearly on the way down, mandy, it has been the u.s. market. even today it's holding up better than international markets. it looks like until this thing bottoms, that's going to continue to be the case. but i do think when the markets turn, that i think it's going to have different leadership is my guess, and i think it's going to be led more by international markets and emerging markets, more by industrial producer capital goods sectors as opposed to consumer markets, but until you reach that low it seems the u.s. even though it's going down is still holding up better than most foreign markets. >> jim, we've had these kinds of declines before. a couple times the last few years, i think we had one in 2011, i think we had one in august of 2014 -- my dates may be off, but you get the point -- we have had 8%, 10% slides,

dramatic down days, they have all rebounded, but here is the difference. in those times we didn't have what's going on now. we didn't have a complete global commodity collapse. we didn't have all these global indicators sort of flashing recession. the baltic dry index at 20-year lows, commodity indexes at 20-year lows. does it smell differently this time than a couple years ago when we've had this before? >> well, i think you're right in this sense, that i think it's generating more fear and i think it's going to generate even more yet, brian, but it's really about -- i think what's generating the fear isn't that it's that different than the other times it's come down. there's always something. there's always something that seems bad. i think it's more the persistence of this. i mean, you're right, in some sense it's not only that we're down here again, but we've really done this now three times in just a little bit over a year, and we've kind of spent the last two years being flat,

so this is like a persistently -- it's stopped going up and now it's persistently trying to go down. i think the third time people are starting to get more and more concerned about what does this mean as opposed to when it first happened there was a lot of people going this is a refreshing pause, it's a buying opportunity. i don't hear a lot of that right now, and i do think it feels different, but i think it's a healthy difference, and ultimately what we do need is more fear and hesitancy, if you will, to really resume this. >> i'm 44 years old, okay? and my time line is 20 years out. i'm going to up my allocation to u.s. equities in my 401(k), it's the only way we invest at cnbc, because of what's going on now. i had been largely overseas. declines can be healthy. you know, but you get people coming up to you on the street and saying should i sell my 401(k)? no, right. do not do that. give us some ideas of where people should be investing for a slight margin of safety now.

>> yeah. i totally agree with you. i think this is the time when you want to start getting your buy list together. and it might be even when you feel scared yourself. i think that is the best time -- if you feel scared a little bit, too, that probably means the upside potential from this market is starting to get larger than its downside risk, and i would sort of take these weak days like today and start adding to more of the small cap industrial producer, energy sectors and on stronger days that we're going to get as well, i would start to unload some of your winners in the last few years, the consumer discretionary, the health care, some of the tech hot names, larger cap f.a.n.g.s, if you will, and move marginally towards that direction because i think whatever you buy up today, i think you're going to feel pretty good about over the next

couple years. >> you know, jim, in past periods of volatility we've seen the u.s. dollar has been a safe haven in times of turmoil. it's not the case though today, is it? it's interesting that the dollar really isn't getting that much of a lift despite what is going on out there in the stock market. will the u.s. dollar continue to be the currency of choice in times of fear? >> you know, mandy, i noticed that too today. i think what is sort of interesting, rates are so low they can't go much lower, and the dollar has already been up, and you're not getting that safe haven boom that you generally see on a capitulation bottom. i think the dollar -- the fact it isn't going up in these times says something about the fact that maybe it's done going up, at least against developed currencies. the euro is up today, the yen has been going up a fair amount. i think maybe we could be at the early part of a turn in the currency -- >> or it's just the market telling us it doesn't expect so many rate hikes anymore, if any at all. >> that's a possibility, that

it's backing out some of the rate hike, but really even when the fed started to tighten a month ago, the dollar really didn't go to new highs against developed cu eed currencies so wasn't a lot of premium put in to take out. i think ultimately, you know, i think with a catalyst that takes us out of this, i think surprisingly we're going to get a bounce in growth abroad in particular with all the stimulus from currency weakness, low everybody yields, commodity price declines. ultimately i think it's going to work, and if that does bring a bounce abroad, i think it will bring a sell to the dollar and that will help the foreign markets as well. >> but to be clear, you like small caps even though -- maybe because they're in a bear market. jim paulsen, have a great weekend. forget about today. we'll see you next week. >> thank you. the oil story getting worse today. crude oil crashing below 30 bucks a barrel. goldman sachs' jeff curry was on cnbc earlier today saying while

crude could move lower from here, the worst of the panic might soon be over. listen. >> we're not bullish right now, but i'm not tripping all over myself to be the most bearish guy in the room. the material price declines are behind us. if we move from $30 to $20, yes that's a 33% decline in prices and from a trading perspective that's significant but from an economic perspective it's not. >> the bears certainly out in full force today. with us now to discuss it a little bit more a jeff grossman from brg brokerage. great to have you with us. it started with the iran story, people speculating the sanctions will be lifted this weekend but the sell-off today is much more than that according to you, right? >> oshs, sure. i think it goes back to the china news that's still weighing so heavily on this market right now. again, the stock market seems to be leading rather than following us right now. it's holding us down. again, this may be that final blow off that really knocks

everyone out of the market here and then we may be able to at least build a base and work higher. >> how critical is a close under $30 today in terms of the technical levels? >> not much but again everyone psychological will have a problem with that. i'm not concerned with that. i would say more like $28.50 is a number that from a long, long chart shows a breakdown from a number from more than ten years ago. >> you've been more bullish than most people out there have been. how high do you think we could go and what would take us there? >> all we need is any sort of neutral to bullish news, geopolitical, weather, any sort of change in the build in inventories that we've had will be construed as bullish at these levels. we're at numbers we haven't seen in so longed market is so much more susceptible. >> the volatility expected to continue from here. we'll see where we close in a gu minutes.

>> thank you very much. want this is a week to date chart, folks. marathon oil, one of the biggest oil producers in america has lost another quarter of its market value just this week. the stock is well down 50% or 60% over 12 months. 23% decline for mro in five days. whiting, a smaller company, down 25%. denbury resources down 27%, and sm energy, a smaller player, down 28%. the credit default swap market, which i guess an easy way to say it is insurance on debt, if they go up, it means people are betting against you or the risk that you're going to go under is going up, has jumped for a few of these big names as well. let's look at marathon oil. the five-year credit default swaps on marathon oil at $575. forget what that means. look at the chart. if you're on the radio it's spiking higher. in other words, the market is

saying the risk to mro is going up. hess, kind of a similar looking chart. the credit default swaps are up to $505, but take a look at chesapeake energy, higher than all of them by a number of factors. michelle talked about chesapeake's debt load and where the bond prices are. the credit default swaps on chesapeake are at $3,931, spiking dramatically just this week. now, it is important to note that does not mean these companies are going to fail. it just means the market is nervous that the insurance costs on that debt, ie the insurance risk of not being paid back, is going like this, going up. joining us is chris ketenman, chief energy strategist at macro risk advisers. you see a downside risk potential on crude oil to $20 a barrel. why? >> so the way we look at it, we basically retraced the fundamentals. if we believe shale is the marginal supplier, the rate of

return that companies are still forecasting they can get in shale plays like the permian basis, balkan, eagleford, still too high. we believe that rate of return needs to drop towards their cost of capital to disincentivize. >> i have talked to a number of them, chris. they're not going to do that, especially if they have debt they have to pay. >> well, that's the problem. >> so they're literally pumping oil to pay the bank, that's it, or their investors. >> it's a negative feedback loop. >> there's only two ways, this is going to end. this is not a complicated story. either global demand surges to absorb the couple million extra barrels of oil, by the way, that's probably not going to happen. demand may fall because of everything going on around the world, or supply has got to drop. the only way supply will drap is either, a, the well goss dry, or. b, someone stops pumping oil which nobody has done. what's going to happen?

>> a couple things. one, we actually believe there's risk to oecd demand growth. we see it negative potentially this year. the demand story -- >> jesus, if demand goes down and supply goes up, prices are lower, lower, lower. >> that's our call and we've really reversed coming into the beginning of the year. where we see the most risk is in the equity valuations of upstream producers. you know, crude has declined on a percentage basis from over $100 now. you're looking at $29 on the future. the equity valuations, they're destroying capital. rate of return on your invested capital is below your weighted average cost of capital. you're destroying your net present value per share and all of these companies are not free cash flow positive. they cannot self-finance. they need to come to market. we saw pioneer. >> diamondback did. i have talked to people extensively, they can't do it. >> some are getting these deals done. as long as that's going on we

still think there's downside risk to valuations -- >> are we going to see a wave of bankruptcies coming? >> yes. >> i don't want to talk about all the bonds but some of the bonds we look at every day on market access, these companies we use, 12 cents on the dollar, 25 cents on the dollar, 30 cents on the dollar. >> there will be home runs to come out of this downturn in the cycling, but by and large so much debt has been injected into this industry at $100 oil it's not sustainable at current prices. >> chris kettenman, good to meet you. thank you. you know what they say in texas, all the fortunes are really made in the downturn, let's hope. >> let's certainly hope that's the case. it's just after 2:15 and a massive sell-off is ongoing on the street. the dow is down more than 400 points. certainly off its lows. it was down by more than 500 points but still with a drop of 2.5% is not what you want to see. however, not everyone is getting slammed today. if you put money in these inverse etfs, you're up. sh is short the s&p.

dog is short the dow. ddg is double short the dow, and dug is short oil and gas and you can clearly see it is up by 6.7%. psq, by the way, is short the nasdaq and it is currently up by just over 3%. so while it is a tough day on wall street, things were even worse in some of the european markets. you think you got it bad here? take a look at some of the european markets there. let's get to cnbc's wilfred frost with more. >> how are you doing? absolutely right. europe is very much involved with this sell-off. germany down about 2.5%. the rest of europe down about 2%. don't forget that yesterday europe didn't catch the bounce that the u.s. got, so the sell-off today to the downside perhaps even more of a negative surprise than the moves we've seen in the u.s. today. over the course of the year-to-date, we're looking at germany down 11%, wiping out its 9% gains last year and similar large moves across the board in europe and that question being

asked, does oil really have that much of a negative effect on european economies and markets? does china really have that big an effect on the european economy? if we look at some of the stats, yes, it's the second biggest trading partner for international trade for europe -- >> so wilfred, at least one thing europe has going for it is the ecb is in stim lay tiff mode. >> it's very, very true and we have the ecb meeting next thursday so it's important to focus on that. people would say it's not quite as important, this meeting, as december's. we're not expecting more action, but definitely there will be focus on the rhetoric and as you rightly say when you bear in mind the turmoil we've seen over the last couple weeks, we can expect mario draghi to strike an increasingly dovish tone albeit we're not expecting further action at this point and there's been tone out of various ecb

board members saying they need to wait to see to see what the current loose ning policies lea to. the yen has been a safe haven. the euro has been a safe haven and that has an inverse relationship with european stocks. >> wilfred, i don't understand the oil explanation for europe. i get it here. we have a booming industry, hundreds of thousands of jobs being decimated. in europe with the exception of something in the baltic sea, you guys aren't producing a lot of oil. gas is already expensive. is oil -- i don't understand why oil is being blamed for europe's problems as well. >> it's a very, very good point, brian. of course, europe net importer of energy. more gas than oil, but -- >> it should help. you all should be lighting your cigars with 20s. >> absolutely. you're absolutely right. it should help. of course, there's the commodity names weighing on the indices. it should be buying everyone else. earlier in the week on worldwide

exchange we had fidelitiyfideli of europe. at the moment it's the correlation we're seeing globally, markets coming down. also the china factor. oil the focus this week in the u.s. china the focus last week. china is still a focus this week from europe and it's important. it's worth about 10% of sales, for example, for the dax, the german index. it is a big factor in europe but you're right, i think oil should be a net beneficiary even more so than it should be in the u.s., and just point out as well german gdp came in this week, 1.7% year on year. that was in line with expectation and also the driving force that made up most of that growth was consumption. so we are seeing a lift up in consumption with the cheaper oil but stokts aren't focusing on that at the moment. >> thank you for that, wilford frost. other headlines, intel shares are deep in the red after the company reported data center

revenue that is fell short of wall street estimates, and i do believe that intel is probably the biggest loser on the dow right now if i'm not wrong with a drop of over 8% there, right? >> yeah, it is. i was just looking. you really have exxonmobil is the stand out stock in the dow, by the way. that's the name people are flooding into. you have walmart closing 269 stores globally. 16,000 employees getting impacted. 154 of those are going to happen in america and puerto rico. you have tons of stocks that are on the move. 52-week lows. fossil, whirlpool, mead johnson, nutrition, american express. the least worst group of stocks this week are the utilities because when people get scared they tend to buy these stocks. everybody wants to keep their lights on. the idea is you will pay that over anything else so you eye tilts are viewed as a relatively safe place to keep your cash.

spencer joyce, hilliard lines, greg joyce. greg, you don't hate utilities but you also don't want to overstate how safe they might be, correct? >> well, i guess you could put it two ways. one, your observation on the business model is 100% right. these companies are regulated. they don't take foreign currency -- they don't have any foreign currency exposure. they don't take commodity exposure. they build infrastructure assets and earn fixed returns. in this type of market environment it looks pretty awesome especially when the average dividend yield approaches 4%. that being said, they're trading on the high side of what i would consider fair value if you look at price to book multiples, you look at price to earnings multiples. you look at the dividend yield relative to bond yields, but they are not trading at the defensive premiums we saw when they were at their apex at the end of january last year so they

look like they're on the high side of fair value. they don't look overvalued, but i wouldn't say you're getting a bargain here. >> are people buying utilities because they think they're a good valuation and they like the business model or are they buying utilities because they're under their desk sucking their thumb and their hair is on fire and that seems like the least worst place to go? >> well, brian, it's probably a little bit of both. to greg's point, the utilities are not particularly cheap at this point. however, if you recall our conversation a couple weeks ago, we actually believe utilities are still somewhat contrarian. they did underperform last year. we think there is some allocation rotation that's helping them at this point and strictly being contrarian has helped them somewhat. also we like the group at this point based on interest rates. at hilliard lyons we are somewhat more dovish than consensus at this point. and believe a yield curve

flattening later this year ahead of the election may be driving macro run to the sector. >> you know, we need water. got to have water to live. awk, american water, why do you like this company? >> aw k is guiding to 7% to 10% earnings growth through the end of the decade. our independent analysis agrees with this and in today's growth environment, really sector indiscriminate, we view that high single digit rate as fairly compelling. extremely resilient outlook. au a well diversified regulatory footprint which if anything it's improving and a fair valuation multiple in our view. >> i saw jim cramer said he was buying american electric power earlier today. that is also a name that you like. what makes aep worth our viewer and listener's money. >> aep is a big regulated utility in the u.s. they operate in over ten states.

they build transmission and distribution infrastructure. they own regulated power plant assets and the small footprint they have in nonregulated businesses they're selling. they aspire to be the next premium u.s. regulated utility in terms of having a low-risk profile, midsingle digit aeshti earnings and dividend growth rate. they're definitely on their way to achieving that. this is one of the few stocks that is trading at a relatively decent valuation. it trades at a bit of a discount to the more fully valued quote, unquote safe haven names in the group. i feel a lot better putting money to work in aep if people are looking to get incrementally defensive. >> greg gordon, spencer joyce, we appreciate it. have a good weekend. see you soon. >> take care. >> if you think today is bad, wait for next week because if chinese data comes in sour, all bets are off. seema mody, you're looking ahead

to next week. >> that's exactly right. a series of economic reports from china being unveiled monday night. it's likely to be what global markets respond to on tuesday starting with china q4 gdp. analyst expectation is 6.9%. the real estimate around 4% to 5%, but at 6.9%, by the way, that's the slowest pace of growth for china since the financial crisis. we'll also get a read on industrial production and retail sales from china which will likely highlight china's transition from manufacturing to a consumption-led economic. that's why we're expecting a jump in retail sales. that's the number to watch. lastly, the big focus for markets will be the currency. how does beijing respond to potentially weak economic data? will it, in fact, allow the currency to fall once again? of course, the rapid depreciation in the chinese yuan continues to be a source of concern for investors. mostly because there's so much lack of transparency around how china will manage its currency going forward and that, of course, is keeping traders on

edge. once again today we saw the chinese yuan fall slightly against the u.s. dollar. so far it's down 2.5%. >> earlier on we were speaking with michael schuman, an old friend of mine who has covered the china region for like two decades and he was saying you have a lot of pieces of the puzzle for a full-blown economic crisis, like capital outflows, unstable currency, high debt, but, but, and here is the but, because the government still controls so much of the economy and has a lot of tools in their toolbox compared to, say, here and elsewhere in the world that might prevent them from falling over the cliff. >> absolutely. >> you might say the credibility of authorities has been undermined recently with some of their strange moves that haven't really had as much effect as they were hoping but nonetheless, they do have a lot of tools at their disposals. >> it's china's management of their economy as well as it's financial system that is keeping investors somewhat concerned. there's so much uncertainty around how regulators will control the financial system going forward. there were those emergency controls they implemented last

summer during that meltdown. those were expected to be taken back this year but that didn't happen and that, of course, has weighed on sentiment. >> here is the thing at least among some of the investors i know, even if that china data comes in at 10% gdp growth, a lot of people aren't going to believe it. i can come home to my parents and say i got an a plus on the math test, mom. great, she wants to see the report card and confirm. china can say whatever they want. >> they can say whatever they want and arguably they do say whatever they want, right? but at the same time it's the trajectory you watch, is it slowing, getting better, it's not the actual numbers because the actual numbers are possibly a little fuzzy around the edges. >> there are ways you you can slice and dice out a number whether it's real or not that givers you a better understanding of how china is, in fact, investing in their economy and, brian, i would say there has been a lot of debate as to whether you can believe the numbers that china unveils,

but it still does move markets. history has shown after the china gdp numbers, markets do move. >> we interviewed jamie dimon two years ago and i bet him lunch that china would fall below 7%. he said no way. i think jamie dimon owes us lunch. jamie, are where are you at? i want a sammich. it is almost half past 2:00 on wall street. let's take a look at the dow. if you're just joining us, welcome, happy friday. the markets are having their worst year ever, and today is not helping. the dow is down 455 points right now. it is one of the worst day that is we have seen in months. again, the worst start to a year in recorded history. over 100 years, no start to a year has been this bad. in other news, there are some stocks up, but the worst performing stocks of the dow, look at that. intel is down 8.7%.

intel is down nearly 9% in one day. disney, supposed to get this giant "star wars" lift, everybody is going to see it, parks will be packed, disney stock is one of the worst in the dow down over 5%. in the s&p 500 it's another tough day for marathon oil. mro is your ticker there. that stock down 12%. it's lost 23% this week. consol energy, that's down 10.5% and qorvo down 9%. speaking of oil, the oil markets closing for the day and the week. let's get your trade from jackie d. >> good afternoon. we did close today under $30 a barrel. the sentiment was negative. earlier in the week we touched that level and weren't 5ib8 to hold it. today we did. when we go into a long weekend, we usually get buyers into the market. but that shows you how strong the sentiment is to the downside right now.

it started with concerns about iranian oil coming back to the market with those sanctions maybe being lifted this weekend. that was one piece of it but then the sell-off in equities added pressure. more fear about china adding pressure as well. and you reported the rig count number. only one rig came offline last week. that just goes to show you supply is going to continue to go up. and this is really the problem that we have and why people are so worried about the iranian oil. we have too much supply out there. demand is going to be flat to maybe even lower. so the equation just doesn't make sense at this point. you have had a lot of guests on today who said oil could go lower from here. they're not necessarily so worried about it. but there will be some more volatility by all accounts. >> jackie d., stick around here. blackro blackrock's ceo larry fink normally doesn't talk about oil but he was on cnbc earlier today and he talked about crude oil. take a listen to what larry fink said. >> it's going to be a pretty good buying opportunity. >> what does capitulation look

like . >> another 10% which is pretty nasty. you can see that and you can see oil testing $25, $24, but my worry about oil prices today, i'm sure nine out of ten of your guests talk about oil is going lower now, so it's a very heavy trade. >> you know, he makes a good point, jackie. and you do wonder, i mean, every oil strategist is tripping over herself or himself to cut their forecast. estimates on stocks. everybody is throwing in the towel. sometimes when that happens is when things go the other way. i don't know -- is anybody saying we could have a sharp reversal. >> after that interview that i did with the trader a few minutes ago, he said to me, when the boat gets tipped to one side, sometimes you're betting off being the contrarian and jeff is one of those people who always is the contrarian and he said oil prices could go higher from here. this is a very scary trade when everybody thinks we're going to go that low but that's not to

say when you look at the fundamentals we can't touch $24 or $25. some people as mentioned throughout the week are even calling for the teens in oil prices now. it could get worse from here, and that's the hardest part of this trade. nobody really knows what to do. i think that's one of the pieces of why the sentiment was so strong to the downside today, because people kept piling on. >> and i have seen people on the anger machine, aka twitter, have been giving you grief about being bearish for months. guess what? >> we were right. >> no, you were. great work. >> thanks, brian. >> the market is selling off pretty much every big oil company. some names are down 15% or 20% this week. those companies with high debt and low cash have been particularly punished by investors. however, if you are thinking of holding your nose and investing some money in beaten up oil companies, we wanted to help you do some work. so we ran a screener for companies with low debt relatively and a solid cash position. a note of caution, all oil

companies are under the knife right now but of the 200 or so we follow, here are a few oil names with pretty clean balance sheet. dril-quip. core labs. exxonmobil, relatively low debt, good cash. maybe that's why exxon is up this week. helmerich & payne. synergy resources. we're not saying go out and buy these names but if you're looking for companies with relatively low debt and decent cash, that list a good place to start. you've always got to do your own homework but hopefully that little screener will give you a decent starting space. mandy? >> you have done all the heavy lifting for us, brian. today's drop adds to what has been a pretty horrible start to the year for a stock market. so the way i see it, you can do one of two things right now. you can either buy the dip or you can take cover. dominic chu and mike santoli are with us to break down both of those strategies. dom, we've given you the

assignment of being today's bull. mike santoli, you are today's bear. i don't know if it's your personal views or not but just be the devil's advocate and argue it for us anyway. dom, why should you be buying? >> this is the debate happening in the marketplace. there is a reason why you want to buy the dip if you look historically speaking since the financial crisis, and that is because every time we've seen a pullback of this degree, it has been bought. so an average pullback last year was around that 4% to 5% mark. we did see a larger one towards the end of the year. it was bought. another reason for at least some hopefulness is that perhaps oil is trying to find a bottom. of course, yes, the bears will say oil has been trying to find a bottom ever since $70, $60, $50, $40. you get the drift. but there are certain names that have been beaten up badly that have been holding up relatively well and that may be a sign that deep value buyers are starting

to feel like it's at least okay to tip their toes in. no one here is taking a sniper shot on calling a bottom but perhaps some financial advisers are saying this could be a time to at least start a position and then build no matter which way the market turns. >> but, mike, what about that little voice at the back of your head that says but what if it's like catching a falling knife. >> that's why you don't want to be very precise about saying this is the low. i think basically this has been a market that's been acting like a bear market for some time and now it's really just come to the surface where you have the major indexes essentially catching down to what a lot of other asset classes and smaller cap indexes have been doing for a while. so i think the calculation here might be what has become cheaper that is not just taking on all the risk of the stock market. for example, some would say that higher quality very large cap stocks with strong balance sheets such as there's an etf with the symbol qual for quality, it's a quality factor blue chip sector fund. and that basically is a way to

stay invested in the stock market but have some kind of cushion. basically they're not levered companies. they would probably not bear the brunt, and they also have started to get thrown out with the rest of the market. also corporate bond etfs. you could look at closed end bond funds. the market is serving up a little bit of discount out there. >> dom, i don't want to pile on a tough tape, but there's 17 stocks in the s&p 500 that are higher right now. that's it. and when i look at the list of the best performing stocks today, wynn, chipotle, mosaic, game stop. these are some of the worst performers over the past year. it smells like, and again i hate to be some sort of a half empty sullivan, but it smells like a very low-quality move up. any stocks that are up have kind of like been the dogs. >> and you bring up an interesting point and we've been talking about this idea there's a sliver, and a very small sliver in the market that's doing well. most of them are companies like you said that have been beaten up really badly.

even year-to-date and more so for many of them over the course of the past 12 months. retailers, you take a look at macy's, having a green day today. also tiffany, best buy, these are some of the stocks that have taken the biggest beating. short covering all plays a part in those stories because people are taking profits by buying back those shores they have borrowed to sell short. again, that's part of the story, although i would say if you're looking at the overall picture for the way stocks are reacting right now, the interesting part about this is whether or not you do find some positive catalyst. now, i can't predict whether it's going to happen or not but some of the traders i have been speaking to down here are saying it's going to be next week. that's going to be key. a lot of economic data and a huge amount of earnings reports that could be the is it sta built. >> brian, let me also say i could cast that another way and say the selling has become indiscriminate, you're throwing away the good with the bad an maybe finally this is the beginning of the purge very wwe

haven't seen. >> you get to a point like we interviewed a guy in texas two weeks ago who said the cure for low oil prices is low oil prices. maybe the cure for a market sell-off is a market sell-off because you get to a point where people start looking at their screens, i'm talking about big investment managers, not mom and pop, and they say, okay, now we're at 14.5 times earnings, we're pretty confident earnings can come in. this is a good spot to go. by the way, nothing else is yielding anything. it's not like there's some asset class doing great so we can go over there. no, the neighbor's yard looks just as bad as ours. >> that's exactly the point. at some point you do usually get to that moment. the problem, of course, is if the market is actually telling us something about the underlying economy and, in fact, it's not just the u.s. being a haven from these growth scares. >> and, dom, just to finish up here, when you take a look at some of the reasons why we've been selling off recently, there's a lot of things up there on the wall of worry, right? but on the whole, we generally know what they are. to the point where people are

starting to say maybe a lot of the bad news is already priced in. >> the market is certainly a discounting mechanism. while people will argue it doesn't operate completely efficiently, yes, the interesting part about this is for the most part things are known. the china factor is known. the oil glut is known. the oil possibly softening demand picture is known. there are yes, you can argue geopolitical risks we can't quantify or model out. however, it's not a situation where you have no idea what the risks are out there, but, remember, if you do have this idea that you kind of identified all the risks out there and you can't climb a wall of worry, it may be one of the situations where you're not trying to pick the bottom but you're trying to leg into positions. >> mark cuban had some good advice. i think he put it on his blog. if you don't know what to do, don't do anything. >> yeah. >> and sometimes doing nothing is the best advice. right, don't sell. don't call your broker. >> nobody should feel like they have to buy or sell a market.

they shouldn't feel -- if you're not comfortable with it and i don't know what you feel about this, mike, you shouldn't be a part of it if you don't feel like you can be comfortable -- >> if you're in l.a., go have a three my tie lunch at trader vic's and chill lax. >> time for "trading nation" because all you traders out there, do you trade better together. today let's try to trade tech stocks with the nasdaq 100 down more than 10%, fully in a correction. is it still time to bet against tech? we've got dennis davitt and katie stockton. dennis, do you foresee more trouble for the qqq, the nasdaq 100 etf ahead? >> well, i look at the options market and what the options market is telling me about the overall market but especially in the qqq, and what we said before, this is the worst market in 100 years or recorded time

but what we're not seeing is a really high price of protection in recorded time. we're seeing the vix at 28, 29. while an elevated level, it's not the levels that it was at within the last year or back during the global financial crisis. so i would not bet against the qqq right here, but i would certainly buy protection against it. i'd put gloves on to try to catch that falling knife. buying puts in the qqq. >> there you go. katie stockton, you are charting the qqq for us. how does it look? >> that's right. i have to say i'm one of those that have thrown in the towel on the bull market, at least for now. in the past couple weeks the loss of momentum we've seen, especially in technology and other high beta areas of the market has been so significant that we've seen a whole lot of breakdowns on the charts. the qqq's broke down below their 200-day moving average. that left resistance intact from the 2015 highs and reflects negative momentum. so while this underperformance

does actually look corrective to me when you take a step back and look at the long-term trends for technology versus the broader market, this does just appear to be a correction. i think it could still persist, and if nothing more in a weak tape you could also see downside just on an absolute basis. >> where is the support, katie? >> well, it's quite simple. so today we can watch 100. it's a very psychologically significant number as a round number, and then below that you get back to about 90 based on previous lows on the chart. so those are the levels to watch. >> okay. we are watching 100, watching hopefully not 90, but we are watching it. katie, dennis, thank you very much. appreciate it. for more trading nation, head to the website, tradingnation.cnbc.com. mandy? >> it's nearly 2:45 p.m. on wall street with a big sell-off on our hands. the dow is down more than 400 points. it's currently down by 434. but let's zoom in on the nasdaq off by 148 points or a loss of 3.2%. some of the biggest losers on

the nasdaq this hour are intel, micron, incyte, lam research. as for some of the biggest winners, wynn reports, very fittingly named, general growth properties, chipotle, best buy, and hasbro chk. >> let's give some people some good news. one upside is gasoline prices are probably going to continue to go down. we're paying $1.60 in new jersey, sorry, california. we'll probably see $1.50 or $1.40. anybody out there, hit us up on twitter, show us the lowest gas price you can find. i want to see something $130, $114 $1.40. call them the f.a.n.g. stocks, whatever you call them, they're down big today. 3.5% or more. seen as market leaders. we're going to julia boorstin with more on the tech tumble. >> facebook, amazon, netflix, google now called alphabet, they

made headlines for outperforming last year, now they're in focus for steep declines in just the first few weeks of the year. so far in 2016 amazon shares are down 16% ahead of netflix's earnings tuesday afternoon. it's shares are down about 10%. facebook and alphabet also both down about 10% as well. all four stocks underperforming the major indices dedeclines. rbc tells us a lot of what we are seeing can be attributed to a correction from last year's overperformance. netflix was the best performing stock in the s&p 500 up 134% last year. amazon, the second best performing stock up 118%. they were the only two companies in the index to more than double last year. alphabet shares were up nearly bay half and facebook up by more than a third. the fundamentals of these four companies are still strong and mark notes that the fact they're not particularly exposed to the

market's concerns about china, oil, and terrorism makes him bullish on all four. he's got a buy on all four of the f.a.n.g. stocks. guys, back over to you. >> giving their shipping costs, low oil should help amazon yet amazon is the worst of the bunch. julia boorstin, thank you. you cannot talk tech without talking about apple. that stock like every other stock today is in the red. apple is down 2.$.5%. >> another sign of trouble for apple, it's suppliers. the companies that make the parts that go into your iphones and ipads. josh lipton is working that part of the sell-off story for us. hi there, josh. >> well, mandy, anna log device is just the latest device cutting its revenue forecast on weaker than expected customer demand in its portable consumer business unit. that company generates 20% of

its revenue from apple according to the team at rbc but anna log not along. taiwan semi-conductor forecast first quarter revenue dropping 11%. apple components contribute about 20% of sales for that company says credit suisse, and dialogue semi-conductor which generates 75% of its revenue from apple revised down its outlook for the fourth quarter. who is next? rbc says more could suffer challenges over the next few months. jabil circuit, texas instruments, and amphenol which makes antennas, none of these companies responding to cnbc for request for comment. all this news from apple suppliers raising concerns for some investors about demand for those iphones and that, of course, as you mentioned, why apple stock is now down more than 20%.

but tim cook has said it is very tough to accurately extrapolate how his company is really doing based on these kind of individual data points. apple supply chain is just too vast and complex. investors, of course, will find out more when apple next reports results on january 26th. guys, back to you. >> josh, this is kind of a personal question, but you're a cool young thing, right? you hang out with other cool young things. you're in san francisco bulging full of cool young things. >> give us a joshy. >> joshy. >> there you go. >> birvy the way, it's only coo when you say joshy. when brian says it, very different. >> are iphones still cool. are they the must have items? >> well, mandy, you know, i'm certainly -- i can't be the judge of that. i guess we'll find out on january 26. we know when i last talked to tim cook, of course, and here is the big debate, do you grow iphone units in the quarters ahead? bears have their reasons for skepticism.

last time i talked to tim cook, he implied very much, mandy, they are the cool item to have. that huge user base of iphone users waiting to upgrade. he told me you're still seeing a record number of android switchers. don't take my word for it, take tim cook's word for it. >> he's talking his own book. of course he's going to say that everybody needs to have another iphone, right? >> well, i don't think he's just talking his own book. i don't think that's fair. i think what he's doing is trying to counter the bearish argument that iphone units will fall. he's saying i think iphone units will grow because there are a lot of people still on 4s and 5s -- >> you wonder how much more they can do. they're talking about the next generation of phones, the big break through is going to be no headphone jack which is going to tick everybody off who spent $300 or $40 o0 buying headphone.

on a different -- >> that would be hard for me to believe that when the iiphone 7 comes out, that's all you would see. that would be a no head phones. >> on a separate note, you're in san francisco and i know you don't watch the market like the east coasters do unless you have options in google or something. are people starting to talk to you about the stock market and noticing? was valuations come down funding rounds for venture cap tailists may also come down. are people talking about this now out west? >> sure, i mean, listen, we know already, 2015 a very tough year for tech ipos. if you talk to vcs they'll tell you there's a cooling going on out here buzz there's some confidence that you'll see a lift in tech ipos next year, it would be hard to do as badly as we did in 2015 but also, if you read the analysts from cb

insights, a lot of those might be dragged into the public markets and they've just been priced to such perfection and some of them are not performing so perfectly, they might have a tougher time now this year raising that kind of money from vcs and tap those public market invest investors. >> joshy, it's been a pleasure to talk to you live from san francisco. >> we continue to watch the sell-off on wall street. look at the s&p 500 hitting the lowest level since october of 2014. if you look at the worst performers on the s&p 500 and today's trade, it's really a mix of energy and tech. when you look at marathon oil, console energy among others and intel responding to those disspoiing results last night. that stock down 9%. gorvo announced negative results last week and that stock continues to sell down 9%. a mix of energy and tech

weighing on the s&p 500 right now. >> thank you very much for that. if you are looking for value in this choppy market, is your best bet in tech? kim forest, good to see you there. what particular tech stocks are you seeing that have potentially been thrown out with the bath water to use the pro verb? >> the one i keep hearing today is my favorite pick, intel. it's a different company than it was the last time there was a changeover in technology. and i think it's very, very interesting right now. we also like zylinks and microsoft. >> why microsoft? >> well, i've always thought of them as being a business oriented company and since the new ceo took over the reigns he kind of brought that vision back. i think they've been firing on

all cylinders to move their very, very large client base into the cloud and i think they have the products and people to do it. >> backing up to the first one, intel, the biggest dow loser today, you're not worried about the outlook? >> in the short term it seems soft. however, this is not the company, the same company that miss the the transition to mobile devices. i think it's ces offerings kind of show it is trying to be an internet of things provider of chips. i think there's a lot of room for chips in this world and i think they want to be the premier provider. it's led by different leerdship and they did a large acquisition and you have to look at what they are right now as opposed to the next couple of quarters will do. >> is there any company that you absolutely think is besides microsoft has changed itself? you're saying it's not the same

company it was, any other company you can identify, you know what, we know -- this ain't your grandma's whatever it is? >> this ain't your grandmother's -- i would say ca, that's been -- >> computer associates? >> yeah. >> there was a time when pretty much of all of the executives got marched off to jail and then that really is kind of a change of leadership. that was ten years ago or so, but again, a new ceo has come in and refocused it. so those are the kind of changes that i wouldn't say i'm a true value investor, growth at a reasonable price, that's what you have to in tech and value oriented. but those are the kind of changes we like to see and then some traction, some walk behind the talk we'll say. >> i should mention kim, maybe you're good luck because the dow is only down 382 points right now. we were down 400 and you showed

up, now we caught a little bit of a bid. i assume you are long term investors and i assume you're in the market every day buying and maybe some selling. are you actively buying stocks. i asked the guess at the top of the show, who is all the sellers? where are they? >> for compliance reasons i cannot tell you exactly where buying or selling. we are more buyers today. >> with a baseball bat just off camera standing next to you, it's like -- >> compliance people, i fear them, sorry. >> i'm sure you've got plenty of reason. >> the only growth industry. let's go to dom chu. >> we wanted to look at these stocks and etfs and just how much the trading volume has ramped up over the course of the last say day or so. if you look at the spiders, they have traded a huge amount of volume so far today. that's going to be a big deal and one of the reasons why a lot of people are saying this

sell-off could be worse than some feared, the financial spider etf, i shares emerging market, eem all showing a well above average full day trading volumes and we're not even done with the trading volume today. the gold shares up one of the few bright spots in today's trade. etf is a great focus because they use them to take their views, guys. >> thank you for that. talking about how 2:00 could get real interesting and we are continuing to improve, only down 375 points, back above 16,000. let's get to the market flash. >> there are pockets of green on this down day. look at the s&p 500 utility sengt tore, the only s&p sector trading in positive territory. as investors take this defensive approach to investing and some of the stocks that are leading the sector higher, you'll see petco, southern companies and

egl and up about fractionally on the day. back to you. >> kim forrest still here. a lot of charts we're showing in graphics and worst start since 2008. a lot of things we're hearing not since 2008, 2009. are you worried about that kind much collapse? is it possible that this is then? >> you know, anything is possible when it comes to the market because markets overreact, both to the upside and downside. if we're looking for a cataclysmic event that the fed has to step in and all of that kind of stuff, i don't think we're seeing this. commodities are worrying and price of them falling and i think has -- i'm still in the oversupply sort of bandwagon here. there is a little lack of demand but most of it is there is such unbelievable amounts of product coming to market that has to find a home.

you keep pointing out my favorite story for this whole thing is if you're a shale driller, you've got to drill and sell or else you're just -- your debt will kill you. so those are the factors that make this different this time. and we keep hearing from the banks, at least the really big banks that they don't have a whole lot of exposure and you know what, i believe them. they can't lie. they are different this time. if you want something this time -- >> somebody holding oil debt and 12 cents on the dollar, somebody is holding it somewhere. >> somebody is and i'm going to guess it was private money like pension funds and hedge funds. the banks have to declare what's on their balance sheet and i don't believe it's them. >> you said it -- that's an important story we tried to tell over a year now which is a lot of people -- i don't care about oil, i care about cheap gas. >> if you've got a pension and they invested heavily in oil debt, there's a pension risk

here too. >> as a taxpayer, that's who ultimately pays those pensions so you know -- >> kim, we're going to leave it there. kim forrest, thank you. it's going to be a huge hour for closing bell but just quickly, many of you may know or may not know that our dear miss mandy is going back to australia. last day here for now. >> for now. >> you're staying -- >> oh, my -- >> you're staying with cnbc. >> that's right. >> but for family reasons and everything, personally it has been an honor and pleasure. you've made me better. you are a great friend and bring sunshine into this windowless office every day and i want to say thank you for everything. >> are you going to make me cry now on national television. >> wine in a box and flowers in a box. she wanted to move closer to the family. i said just move to new jersey, hour off the flight. >> it's still going overseas in a way.

>> it is a foreign country, new jersey, right? >> i don't have words. i'm actually speechless but thank you both. >> you're staying with cnbc. >> i'm heading back to cnbc sydney and asia and popping back here in the future as well. >> you're a good daughter and good for your family, we'll miss you. >> closing bell starts right now. welcome to the closing billion. this is the last hour of trading. >> i'm bill griffith, the dow was down 537 points at the lows of the session, we have come well off those lows and back above 16,000, that may be having some traders breathing a little sigh of relief. after yesterday's rally we were actually up for the week by about 33 points but of course with today's decline we have wiped those gains out. >> we have, as mentioned dow down 360 at the